Scottish government to revamp PRS

Scottish landlord insurance customers could soon be facing new regulations, after the Scottish government revealed that it is looking into ways to potentially change the private rented sector and give it a revamp.

It said that it is looking for new ways to attract investment that would help see more new homes built across the country for the express purpose of entering the rental market, something the coalition government said it would do with an £800 million boost at the 2013 Budget.

Alongside this, Holyrood said it is to consult professionals and work with letting agents in order to make provisions to add regulations to the rental sector that would make it fairer and more even for all involved in it, both tenants and owners.

This has been brought to the fore thanks to a shift in the market, moving it away from the demographic that original rules were introduced to protect. Shelter Scotland said that there are more and more families now moving into rented properties, for example, but the initial regulatory laws were put in place to safeguard the interests of students and young professionals, who were more traditionally tenants.

Housing minister Margaret Burgess said that Scotland's rental market is growing more and more all the time, but added that it is important that it continues to increase to meet needs, and that this can only be done by regulating the sector correctly.

"Letting agents play an important role in managing private rented properties. We want to ensure that all letting agents meet the standards of those that provide the best service. By working together with letting agents on further regulation of the industry, we will help to ensure private rented accommodation is of a good quality and well managed, benefitting both tenants and landlords."

She added that one of the key issues would be looking at rules surrounding the increasing demand for long tenancies, with these now far more prevalent than the more traditional six to 12 month options.